US initial jobless claims decreased to a level of 187,000 in the employment survey week ended July 18, the lowest level since 1969, from an upwardly revised 209,000 level in the previous week, compared with expectations for an increase to 210,000 in survey of analysts compiled by Bloomberg.
Initial claims were at a level of 227,000 in the employment survey week ended June 13.
The four-week moving average fell by 7,250 to 207,500 after falling by 4,500 to a level of 214,750 in the previous week.
Insured jobless claims fell by 2,000 to 1,796,000 in the week ended July 11.
The weekly initial jobless claims data released by the US Labor Department measures filings for unemployment insurance benefits. Initial filings are reported through the previous Saturday, while those already on benefits are measured with a one-week lag.
A decrease in claims suggests a stronger labor market, a positive for the US economy and stocks, but a negative for bonds as it suggests wage growth that could lead to inflation.